Learn about Anti Money Laundering Whistleblower awards.

February 1, 2021

Key facts about money laundering whistleblowing and potential whistleblower awards

The new Anti-Money Laundering Act (AMLA) has teeth that take a bit out of money launderers and protections and awards for those who want to blow the whistle on substantial money laundering activities. . The AMLA targets businesses that act as fronts or shell companies for money laundering activities.

The AMLA modernizes the anti-money laundering laws by economically incentivizing whistleblowers to come forth with as much as 30% of the funds captured by the government and providing an overhaul of important financial security controls meant to identify and prevent money laundering and other illicit activities. Among numerous other things, The AMLA seeks to:

  • Modernize anti-money laundering (AML) and countering the financing of terrorism requirement (CFT) laws to adapt to new and emerging threats.
  • Risk-based reinforcement of AML/CFT policies, procedures and controls.
  • Establish uniform beneficial ownership information reporting requirements.
  • Provisions of the new AMLA will have a major impact on institutions with Bank Secrecy Act (BSA) reporting requirement.

Additional money-laundering reforms introduced by AMLA include:

  • Establishing an improved reporting system relating to beneficial ownership information.
  • Expanding the BSA to safeguard national security
  • More routine and systematic coordination and communication among financial institutions
  • Improved BSA-AML priorities, collection methods and outcomes by regulators, law enforcement and financial institutions.
  • Imposition of stronger due diligence requirements

You can receive up to a 30 percent whistleblower award

With the use of a whistleblower attorney, you can potentially remain anonymous and obtain an award. Section 6314 of AMLA allows whistleblowers to claim an award if their tip lead to enforcement action by government agencies such as the Securities & Exchange Commission (SEC) and monetary penalties. The award amount can be up to 30 percent of the total money collected by US Department of the Treasury (Treasury) in judicial or administrative action.

The whistleblower program in The AMLA is modeled after the whistleblower rewards program of the Securities & Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) which were created by the Dodd-Frank Act in 2010 that provided rewards for covered actions that result in over $1 million in sanctions ordered. Since its enactment in 2010 hundreds of millions of dollars have flowed in SEC whistleblower awards and CFTC whistleblower awards.

Some whistleblower recoveries and awards under the acts.

The AMLA significantly expands the current BSA whistleblower incentive law and permits the Treasury to reward an individual whose original information about a BSA violation leads to recovery of more than $50,000 in civil penalties, forfeiture or criminal fines.         

SEC enforcement actions from whistleblower tips have resulted in over $2.5 billion in ordered financial remedies since 2012. As of December 2020, The SEC has awarded $728 million to 118 whistleblowers whose information and assistance led to successful enforcement action. In 2020 alone, The SEC awarded $175 million to 39 individuals, including $114 million awarded to a single claim in October 2020 that included $52 million in SEC action and approximately $62 million in action by another agency. In FY2020, CFTC awarded approximately $20 million to 16 individuals who blew the whistle on SEC frauds. Since the inception of the whistleblower awards program, CFTC has granted 25 whistleblower awards totaling more than $120 million.

Filing an anti-money laundering whistleblower lawsuit with a qui tam law firm

If the past success of the SEC program is a prologue, we can expect more enforcement actions in the coming years as the AMLA whistleblower program matures. Since the inception of SEC whistleblower law, the agency has received whistleblower tips from 130 countries outside of the United States.  With money laundering, its suspected hundreds of billions of dollars are laundered each year, so billions of whistleblower awards may be for the taking if you have the right information presented in the right manner.

However, to claim the whistleblower award, you should blow the whistle in the right manner and know the exact procedure to file a Qui Tam or whistleblower case, which is why it’s so important to have whistleblower counsel. The whistleblower should be able to provide information which is not otherwise known to the Treasury or Department of Justice from other sources. Providing information from an allegation made in a judicial or administrative hearing, or investigation from a government report or news media will not qualify you for a whistleblower award. Under the AMLA whistleblower law, it is mandatory to use a whistleblower law firm to file a Qui Tam case if you wish to try to remain anonymous. You may not be awarded a whistleblower award if you fail to submit information to the Treasury or Justice exactly as required under AMLA regulations.

Your identity may remain confidential

Brown LLC is one of the  leading whistleblower law firms in the country and consider one of the best whistleblower law firm to deal with – a firm led by a former FBI Special Agent with some of the best whistleblower attorneys who could help you get the best outcomes and enhance your potential of earning a whistleblower award. The leading whistleblower law firm has successfully recovered tens of millions for its clients

The AMLA allows a whistleblower to report a BSA violation anonymously and qualify for an award where they are represented by counsel. In addition, AMLA requires Treasury and Justice to take steps to protect the confidentiality of whistleblower submissions.

The AMLA creates a private right of action for whistleblowers who suffer retaliation for disclosing potential violations of BSA. Under the AMLA whistleblower program, one also gains the ability to claim anti-retaliation protection that includes the right to file an anti-retaliation lawsuit against the offending company or individual.

Call Brown LLC’s whistleblower hotline for a free consultation

Brown LLC’s team of whistleblower lawyers is led by a former FBI Special Agent and Legal Advisor and the firm is dedicated to protecting whistleblowers.  The firm will educate you on your right and try to ensure that you are protected from retaliation such as dismissal, demotion, unjustified transfers, discrimination, etc. by the wrongdoers against whom you report a money-laundering fraud, such as your former or current employer or any other entity.  Our best whistleblower attorneys will ensure that you remain anonymous till the case has progressed to a certain stage, and your identity is protected in accordance with the Privacy Act. To discuss how to report a SEC or BSA, AMLA whistleblower case please call us at (877) 561-0000 for a free confidential consultation on how to report money laundering. Brown, LLC protects whistleblowers who do the right thing.